How To Get A Startup Business Loan with No Money or Collateral in Nigeria: Here Are 16 Steps


A country’s economy’s development and growth are significantly influenced by how well its firms are doing.

Because of this, the likelihood that the economy will grow as a whole increases as more enterprises succeed.

Even in a country like Nigeria, where policies are not precisely supportive, these enterprises require capital to launch and grow. 

It is impossible to overstate the importance of beginning business loans in Nigeria; thus, if you operate a company, you should look into the organizations that provide them and take into consideration how to get a startup business loan with no money or collateral.

In the country, businesses would easily survive and prosper if they had access to the right loans.

To this end, this article seeks to succinctly outline and discuss how to get a startup business loan with no money or collateral in Nigeria.

Table of Contents

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Key Takeaways 

  • As a small business owner, your primary priorities should be expanding your company and meeting customer needs.
  • Unsecured lending—a loan without security (collateral)—is more common in Africa as the need for finance from businesses increases.
  • Loans without collateral work best as short-term loans that you want to pay back as soon as possible.

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How To Get A Startup Business Loan with no Money or Collateral

The following steps illustrate how to get a startup Business loan with no money or collateral;

  • Having Financial Backers
  • Crowdfunding
  • Venture capitalist 
  • Advances on Invoices or Factoring
  • Grants
  • Having a cogent reason or a loan project in mind
  • Loan Application
  • Government Loan Schemes
  • Reviewing your financial records for your business and assembling your documents

Step 1. Financial Backers


Angel investors, or financial backers, are people or organizations that provide capital and support for the development of startups in return for a specified portion of the company or a return on their investment.

Angel investors are a viable alternative for your firm and have historically assisted many businesses in establishing themselves.

They offer other experiences as well, all of which are advantageous to your business. This is how to get a startup business with no money.

Step 2. Crowdfunding


Nowadays, crowdfunding is a very popular method used by entrepreneurs all over the world to raise capital. 

It is frequently not referred to as a loan and does not call for any documentation or conventional loan application and payments. 

Instead of finding a single investor yourself, crowdfunding only enables you to open the door for investors to invest in your idea. 

Additionally, there are several crowdfunding platforms to choose from; two excellent examples are Kickstarter and Indiegogo.

Step 3. Venture Capitalist


This is yet another effective method for financing your company. 

Institutions known as venture capitalists finance high-risk, high-growth enterprises. 

Additionally, these organizations frequently concentrate on particular businesses and have a limited return on investment window of 3 to 5 years.  

Step 4. Advances on invoices or factoring


This process, which involves a provider paying you the money on billed-out invoices, is rather difficult.

Once the customer pays the bill, you are expected to repay the money that was fronted to you.

This mechanism is significant because it produces a win-win scenario for all stakeholders, notably you as the borrower of the company loan.

Step 5. Grants


Startups can apply for funds if their products or services are primarily intended to address economic issues or advance research.

Additionally, some individuals and governmental entities provide them. 

These include initiatives like Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR).

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Step 6. Have a sincere reason or loan project in mind


Never ask for a loan from a microfinance bank for unnecessary expenses. 

A legitimate explanation must be given if you desire a loan from a microfinance bank. 

Your reason for seeking the loan should be significant, whether it is for commercial purposes or personal growth.

Only small and medium-sized firms (SMEs) are eligible for loans from microfinance banks. 

They are also involved in business, and no company likes to lose money. Loan distribution is a serious undertaking. 

Since you must guarantee that you will pay back your loan, whatever you seek credit for must be a genuine business or a significant undertaking.

The majority of microfinance banks offer loans for salary earners, loans for businesses, loans for the purchase of assets, loans for agriculture, and loans for educational reasons. 

With no guarantee of repayment, no microfinance bank will grant you a loan.

Step 7. Loan Application


The quickest and most popular method of obtaining a loan in Nigeria for new enterprises is through this method.

To determine your loan package and whether you should be granted a loan, loan applications typically take between 5 and 10 minutes. 25,000 to 10,000,000 is the range of loan amounts.

These apps typically offer collateral-free business loans without the need for any kind of security.

Your credit score is the sole factor they use when deciding whether or not to accept payment.

Pros of loan apps

  • They are swift.
  • They provide a substantial sum of money.
  • No security is necessary.
  • Do not visit a branch. Only an app needs to be downloaded.

Cons of loan apps

They frequently only have one physical branch.

It’s possible that you won’t obtain what you want.

The software determines how much it can trust you.

You must still conduct your due research, even though loan apps offer some of the best small business loans.

Step 8. Government Loan Schemes


To aid MSMEs and SMEs, the Nigerian government has set up a few organizations. 

Bank of Industry (BOI), Bank of Agriculture (BOA), Development Bank of Nigeria (DBN), Nigerian Export-Import Bank (NEXIM), and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are a few examples of these organizations.

They were founded to provide grants and low-interest loans to Nigerian MSMEs and SMEs. 

The advantages and disadvantages are listed below.

Benefits of government credit programs

  • Grants or low-interest loans are available.
  • They emphasize SMEs and MSMEs.
  • They occasionally provide business loans without collateral.

Drawbacks of government loan programs

They are challenging to obtain because of the intense competition.

Step 9. SMEDAN


SMEDAN, a government-backed program that provides fast and simple business loans to Nigerian SME enterprises in need of funding, comes in last on the list. 

The organization’s main goal is to encourage Nigerians to start their businesses and to finance those ventures.

Along with financial support, SMEDAN also offers practical training and assistance to company owners to help them run their enterprises.



Aella Credit is developing systems that make it simpler for African citizens to acquire credit. 

The organization, which primarily specialized in employee financing and empowerment, was associated with Nigeria’s three major credit bureau companies to offer its clients quick, reasonable loans with no paperwork.

To assess a user’s creditworthiness, Aella Credit employs a unique credit score system. 

The algorithm evaluates a borrower’s eligibility for a loan by taking into account social and demographic aspects as well as their debt-to-income ratio. 

It was developed after the team gathered and analyzed market data for more than five years.

Step 11. KIAKIA.CO


Nigerian companies can borrow money digitally through KiaKia.

With its patented credit score and credit risk assessment algorithm, KiaKia uses psychometry, big data, machine learning, and digital forensics to offer direct and peer-to-peer personal and business loans to millions of people and SMEs without credit information.

“Fast Fast” is the translation of the name KiaKia, which comes from the Nigerian language.

They contend that while the treatment is quick and easy, it is also incredibly effective. You can quickly get small start-up business loans through this digital means.


To encourage business growth, FastCredit provides business loans to micro, small, and medium-sized businesses.

For business owners who meet the requirements, the loans are secured by guarantors and have a maximum term of 6 months.

In addition to business loans, they also provide easy and quick “all-purpose” cash loans to staff members of corporations, such as those working for banks, TELCOs, insurance companies, other financial institutions, FMCG companies, pharmaceutical companies, aviation companies, and oil and gas companies, to help them urgently meet customer demands.

Step 13: SPECTA

A loan of up to $5 million can be obtained through the online lending platform Specta in just one transaction and within 5 minutes.

No paperwork, no collateral, and no office visits.

With Specta, you may attend to urgent personal and professional demands whenever and wherever you are.

The two loan products offered by Specta are Specta4Business, which offers quick and convenient loans for corporations and company owners, and MySpecta, which offers personal lending services.

Step 14: C24

The main purpose of C24 Limited, a microfinance organization, is to provide people with a way to take advantage of possibilities in their community by assisting them in getting financial loans when they need them.

C24 is aware of the demand for quick loans and the need for faster loan processing times.

To help applicants escape the anxiety associated with other lending organizations, their online loan application process has been optimized.


Short-term loans are made available to individuals and small businesses in Nigeria through Paylater, a simple and fully online lending platform, to help with unforeseen costs or urgent cash demands.

You can obtain an unsecured loan of up to 500,000 Naira with Pay later. 

Within one to three business days after your application is accepted, you should get your money.

Your next loan’s credit limit may increase if you make on-time repayments. You can easily access small start-up business loans to be repaid at the due date.

Step 16: Review your financial records for your business and assemble your documents.

You’ll be far more likely to acquire the loan you want if you have current financial information. 

By assessing your company’s overall financial status and non-collateral small business financing options, you can make sure that your finances are in order.  This helps you access small start-up business loans.

Some non-collateral small business financing options may be harder to qualify for than others.

Additionally, you would need to update your balance sheet, create important financial papers like a profit and loss statement and a cash flow statement, as well as verify your personal and business credit scores.

You would also need to analyze your total cash flow and business expenses.

How to get a Startup Business Loan with no Money

Although it can be extremely challenging, it is not impossible to obtain a starting business loan without any cash. Many lenders provide loans to businesses without requiring an upfront payment, although the terms and conditions of these loans may be harder than those that do. Find out carefully how to get a startup business loan with no money.

1. Have a Business Plan

Lenders will want to see that you have a solid business plan that describes your aims, target market, and competitive advantage—even more than when you have money. This singular document gives you a high chance to finally answer the question of how to get a start-up business loan with no money.

2. Develop a solid credit history for yourself

Lenders will want to see that you are a responsible borrower, even if you are not asked to put any money up for your loan. A good personal credit history can persuade lenders that you’re likely to make your loan repayments on schedule. The next time you think of how to get a start-up business loan with no money, ensure you have a clean credit history.

3. Look for loans backed by the government

Some government-backed loans don’t require a down payment for businesses. In comparison with loans from private lenders, these loans often have lenient terms and limitations.

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Institutions that offer startup business loans with no collateral in Nigeria


Businesses can get financing through Lidya, an internet platform. 

The platform provides unsecured loans of $500 to $15,000 to small and medium-sized businesses.

The founders claim that Lidya “assesses the risk before granting the loans using technology and algorithms, allowing them to offer financial products to these customers at a low cost.”


In Africa and the Middle East, GroFin offers business loans for small- and medium-sized enterprises (SMEs). 

GroFin is your best shot if you want to grow your firm and have investable stats.

Businesses can receive business loans with GroFin ranging from $100,000 to $1.5 million. 

Here is where you may submit your online application if you believe your company satisfies the requirements.


A contemporary lending platform for people and small enterprises is called QuickCheck. 

QuickCheck provides small enterprises and individuals with access to financial credit through mobile technologies.

The platform claims that customers can quickly and easily obtain loans up to 30,000 Naira for either a 15- or 30-day term without requiring any security.


Short-term loans are made available to Nigerian citizens and small businesses through Carbon, an intuitive and fully online lending platform, to help with unforeseen costs or immediate cash demands.

With Carbon, you have access to unsecured loans up to 500,000 Naira.

Within one to three business days after your application is accepted, you should get your money.

Your next loan’s credit limit may increase if you make on-time repayments.


Consumer financing company Zedvance is dedicated to offering credit to individuals.

You have fewer than 24 hours to repay a loan of up to 3 million Naira.

The organization specializes in giving loans to those who have a salary, but if you make a salary and run a side business, you can choose to take advantage of the offer.


After going over the various collateral-free loan access options, it’s crucial to emphasize that the borrower must take certain actions to ensure easy access. 

It’s crucial to do your homework before applying for one of these loans so you know what to anticipate.

It is also crucial to keep in mind that, because there is a risk aspect, lenders may demand higher fees or interest rates for business loans without collateral.

Therefore, we believe that this write-up has been highly educational and has equipped you with all you need to know about how to get startup business loans with no money or collateral in Nigeria.

FAQ on How To Get A Startup Business Loan with No Money or Collateral in Nigeria

Q: Is it possible to get a startup business loan with no money or collateral in Nigeria?

A: Yes, it is possible to obtain a startup business loan in Nigeria without any money or collateral, but it is not easy. Several lenders provide these loans, but their standards are often tougher than those of lenders who provide loans with collateral.

Q: What are the requirements for getting a startup business loan with no money or collateral in Nigeria?

A: Different lenders in Nigeria have different requirements for obtaining a startup loan without money or collateral. However, a few typical demands are as follows:

1. A powerful business plan
2. An excellent credit history personally
3. An impressive track record, where applicable
4. Capacity to make personal guarantees

Q: What are the risks of getting a startup business loan with no money or collateral in Nigeria?

A: Obtaining a startup business loan in Nigeria without any money or collateral carries certain risks as well. Compared to loans with collateral, these loans often have higher interest rates and shorter repayment periods. These loans are also more likely to default, which can harm your credit record.

Q: What are some tips for managing a startup business loan with no money or collateral in Nigeria?

A: Here are a few tips for setting up a start-up business loan in Nigeria without money or collateral:

1. Make sure your budget and repayment plan are both clear.
2. Make sure you pay your creditors on time by keeping a close watch on your cash flow.
3. To repay your loan on time, be prepared to make sacrifices.
4. If you are experiencing trouble making your payments, speak with your lender right away to review your choices.

Q: What are the benefits of getting a startup business loan with no money or collateral in Nigeria?

There are several advantages to securing a startup loan in Nigeria without any money or collateral. These loans can give businesses the money they require to start or grow without expecting them to put up any of their own money upfront. For businesses that are short on funds or are having trouble accessing regular funding, this might be an important advantage.


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